Okay, I jumped the gun a little bit and went ahead and enrolled early in the Blue Collar Investor (BCI) membership!
Today, we’ll get started on the first part of our journey as a BCI member. We’ll cover the goodies you get as a BCI member, what it’ll cost you, and what you really need to know before starting the course.
Let’s get started!
It’s all about the Benjamins
Let’s get the top question out of the way first.
The premium BCI membership costs $14.95 for the first month and $39.95/month after that. There are other options as well if you’d like to pay for a whole year in advance.
I was a little surprised at the low cost for Alan’s program, especially for the first month. I think it’s great to give folks a low entry price so they can test out your system and see if it fits their particular trading style before committing to a long-term or high cost membership.
I don’t think the $39.95/month thereafter is too expensive either. Most covered call trades should easily be able to clear this cost in a single trade. If you’re trading more than a single lot, or contract, per trade then I think this price is really a no brainer.
So, we’ve more or less settled on the idea this is a good deal from the cost stand point, but how easy is it to jump right into the program? Do you need to a financial genius before you start? I think you’ll be happy with the answer!
Remove before flight
Have you ever seen those bright red tags hanging from airplanes with big, bold white letters saying, “Remove before flight”? There just some things you’ve got to do first and with the Blue Collar Investor premium membership, it’s no different.
Covered calls are considered a fairly conservative approach to options trading and also considered a good starting point for beginners. The book I highly recommend in my resources area, The Rookie’s Guide to Options, has a fantastic section detailing the ins and outs of trading covered calls.
But what if you don’t have the book or just stumbled upon the Blue Collar Investor?
Well, you’re in luck. Alan provides a “Beginner’s Corner” on his site where all you have to do is trade your email address for access to eight videos.
The videos are good and cover a wide range of topics on covered calls, from the basics of defining a covered call to the details on how Alan uses technical analysis to choose his stocks.
Without fail, each video is done in an easy to understand manner and explained with as little jargon as possible. When it comes to breaking down the topic of covered calls and how he executes his system, I think Alan should get an “A” here.
As I went through each of the videos, I took a handful of notes for quick reference so I could execute the Blue Collar Investor system as true to Alan’s teachings as possible. The simple manner in which each video is instructed made for easy note taking and reference when I needed the information.
Now, I think with those eight videos you could definitely execute covered calls on your own. The biggest problem you’d run into is taking the time to screen the 1000s of stocks out there to find good candidates.
This is what you pay the Blue Collar Investor to do.
The key benefit of a BCI membership is laid out upfront for you.
It’s a timesaver. And I have to agree.
If you’re looking to execute a simple system in an efficient manner, I think the BCI team is a good choice.
Alan and the team at BCI say their membership saves you hours of work of screening thousands of individual stocks. They apply fundamental and technical analysis to come up with a select few covered call candidates.
The primary tool BCI uses to deliver this time saving analysis is their Weekly Stock Screen & Watch List. The list is broken down into a couple of sections, but it’s pretty clear once you understand how the list works which stocks rose to the top of the list.
Though these stocks are clearly highlighted as meeting BCI’s screens, they are merely the result of a screen and you get the usual disclaimer that they are “not a suggestion for trading or investment.”
I will say, I did have to flip back and forth a bit between the Watch List and an instructional PDF to understand what exactly I was supposed to pull from the list to take action on. After looking at it for about 15-20min though, I was good to go.
Again, you have to realize when you’re trading a covered call you will end up owning the stock, so you definitely need to be willing to own the stock if the trade moves against you.
Beyond the Weekly Stock Screen & Watch List, BCI delivers a lot of additional information for investors. I was actually a little surprised when I logged in for the first time.
There is a TON of information in the member’s area beyond just the Weekly Stock Screen & Watch List.
Here’s a quick screen shot inside the members area.
And this is just the tip of the iceberg. There are 60 items alone in the “Resources/Downloads” sections and two whole other sections beyond the stock selection reports.
One of the resources you gain access to are the Elite Calculator to help you determine which covered call you should sell. There’s also a paper which describes another strategy based on high-yield dividend stocks, which may interest those long-term dividend investors.
All in all, I think there’s a good bit of value for the price you initially pay for the membership.
I’m not sure if the Blue Collar Investor team means for this to be a surprise for a new member, but I definitely feel this is an under marketing benefit to the program.
All of this is great, but let’s get down to brass tacks…does it make you more money than it costs?
Blue Collar Investor – Getting to the First Trade
I’ll hold judgment on the Blue Collar Investor return on investment until I’ve completed my run of the course through December!
I’ll tell you about my first trade using the BCI system in a follow-up post. I’ll go through it all- performance, cost and exits.
Swing on over to the BCI site here (this isn’t an affiliate link) and take a look around and leave me a comment on what you think. If you want to be the first to know how my trade with the BCI system went, click here to sign up for my newsletter and you’ll find out soon if the system paid off or not!